The broker says the carbon tax will have a modest impact on the company’s bottom line, with the potential to reduce earnings per share by 3 per cent in 2013, assuming it receives assistance, and 9 per cent of earnings per share should it not receive assistance.

Analysts at the bank think ammonia and ammonium nitrate will be covered by the highest level of compensation under the government’s plan. Phosphoric acid won’t, while urea will receive only 66 per cent assistance.